Dannyyee, I have been looking into this closely. I think you hit...

Dannyyee, I have been looking into this closely. I think you hit the nail on the head. ALZ will probably go the "step up" route. The other alternatives are not feasible: (a) exchange would result in big dilution of equity at already weak share price (b) payout not possible as where do they get funds from? (one would think no senior debt available); So question is whether 13.7% per annum rate is acceptable for long term investment in AAZPB. Assuming a worst case hold till 2020 (and using NPV analysis), I work out equivalent return is 24% per annum which is I think quite attractive for ALZ risk (i.e. that is rate you would require on normal bank depo with interest paid quarterly); Realistically though, an exit would likely be possible at better than 92 somewhere in next 15 years. What do you tbhink?